The Greed Cycle Essay

836 WordsNov 13th, 20114 Pages

Article Review: - The Greed Cycle, by John Cassidy

The article by Thomas Cassidy, points out the instrumental role that greed plays in the modern corporation. Modern Economists have always seen greed as not only a necessary element in the corporate environment, but as also a vital part of the successful evolution of a public company. As the article points out, “Economists from Adam Smith to Milton Friedman have seen greed as an inevitable and, in some ways, desirable feature of capitalism. In a well regulated and well balanced economy, greed helps to keep the system expanding”.
In the early public companies, greed was not seen as a danger, as the implicit trust that managers would not slack off, and would run the company in the…show more content…

They went on to state that competition would not solve this dilemma. This lead to a re-evaluation of the goal of corporations, from merely maximizing revenues, to maximize the value of the firm, as it was determined in the stock market.
Once the goal of corporations became maximizing the value of the firm, they attracted wealthy “corporate raiders”, who used this new corporate philosophy to launch many takeover attempts on companies, with the intent on restructuring these companies, as to increase their stock prices, so that they can “refloat” them for a considerable profit. Most of these takeovers were financed with borrowed money, hence the term lever­aged buyouts, or LBOs. As the article states, “In a typical LBO, the acquirer would buy out the public stockholders and run the com­pany as a private concern, slashing costs and slimming it down. The ultimate aim was to refloat the company on the stock market at a higher valuation”. Initially this was seen as one of the best remedies for the agency issues that surfaced between shareholders and mangers. However as the economic climate changed, many realized that the LBO was not the answer. “When the economy went into a reces­sion during the early nineteen nineties, many of the firms that had gone private, such as Macy’s and Revco, couldn’t keep up their interest…

of doom.
Notes:
12. In my opinion, the financial crisis which began in 2008 was caused by…:
A. Government interference in the financial markets
B. A lack of regulation of the financial markets
C. Corporate greed
D. Government incompetence
E. Inevitable economic cycles
Notes:
13. “The only way to make money out of poor people is to keep them poor.” My personal opinion on this statement is most closely described by:
A. This is how it is AND how it should be.
B. This is how…

Greed
In the words of philosopher Erich Fromm, “Greed is a bottomless pit which exhausts the person in an endless effort to satisfy the need without ever reaching satisfaction.’’ It can be technically defined as the propensity to want more than what is absolutely necessary for survival, but to someone who values his quality of life by the quantity of his possessions, it is more than just another antonym for ascetic. To the one caught up in the throes of perpetual seeking, nothing matters more…

defines greed as "an overwhelming desire to have more of something such as money than is actually needed." This definition cannot be argued with for it is plain and simple, giving the essence of the word. But to millions, perhaps billions of people, greed is something else. Some people portray greed as being qualities of the evil, selfish, and corrupt. Although these viewpoints may be partially true, greed cannot be condemned as solely being an escapee of Pandora's Box. Let us agree that greed is pursuing…

The Bible classifies the seven deadly sins – greed, envy, sloth, wrath, gluttony, pride and lust – as the characteristics of people which will lead to unhappiness. One particular sin evident in our world today is greed. Greed is defined as an excessive desire to possess wealth or goods. The greed that exists in our world leads people to unhappy and selfish lives. Greed is evident through individual people, corporate companies and in our governments.
The desire to be successful and happy naturally…

11.10.11
Engl 2333
Greed in Candide
In Voltaire’s novella Candide, the main character’s newly found wealth from an idealized Eldorado is exploited by the world’s fixation of greed that ultimately effects himself and others as he learns that money cannot buy happiness.
Candide is brought up amongst greed, reared in a castle in a small corner of the world in Westphalia with the privileges of being the son of a baron’s sister, his life is ultimately influenced by this example of money and power…

Greed is the excessive desire to acquire or possess more, and it is also one of the biggest creators of tragedy. This is so vividly shown in both the novel The Sun Also Rises and in the play Macbeth. In The Sun Also Rises, this greed is directed toward a person, Lady Brett Ashley. Five men; Mike, Jake, Pedro, Bill, and the Count, are fighting to be with her throughout the book. In Macbeth, this greed is directed toward power as Macbeth wanted to become King, and what he does to become it. However…

King Lear as a Commentary on Greed
In Chapter 4 of a book titled Escape from Freedom, the famous American psychologist Erich Fromm wrote that "Greed is a bottomless pit which exhausts the person in an endless effort to satisfy the need without ever reaching satisfaction" (Fromm 98). Fromm realized that avarice is one of the most powerful emotions that a person can feel, but, by its very nature, is an emotion or driving force that can never be satisfied. For, once someone obtains a certain…

Materialism: Can it make you Happy?
Can Greed and Materialism lead to true happiness? “Greed is good. Greed is right. Greed works and greed will save the USA.” (Wall Street) “Cause we are living in a material world and I am a material girl” a theme in one of Madonna’s most famous songs.
Greed and materialism stand in apposition to any manifestation of true happiness. People are under a false perception that money will solve all of their problems and as a result bring them their utmost joy and…

case of KeySpan Energy Corporation, it was difficult for prosecutors to find a specific law or rule that was violated and once again laws had to be reviewed and rewritten. This seems to be an endless cycle.
In conclusion one could suppose that the major problem is the human imperfection of greed. These particular examples show that self-interest was perused in business but not goodwill. The Executives of these companies performed unethical behavior that deliberately harmed consumers. I believe…

Street and the ultra-wealthy. “Greed, for lack of a better word, is good. Greed is right, greed works. Greed clarifies, cuts through, and captures the essence of the evolutionary spirit. Greed, in all of its forms; greed for life, for money, for love, knowledge has marked the upward surge of mankind.” This dramatic speech was given by Gordon Gekko (played by Micheal Douglas) a wealthy businessman, who through this speech is trying to convey the message that greed leads to overall personal, and economic…